Sale Of A Life Insurance Policy (Viatical, Life And Senior Settlements)

Only the owner can sell a policy.

While the owner and the insured are typically the same, this is not always the case. For example, if your life insurance is group coverage through your employer, it is likely that your employer is the owner of the policy, and thus would need to sign off on a sale of your coverage.

If the owner and insured are not the same, generally the consent of the insured is required.

This is due to the practical requirement that potential purchasers insist on reviewing the insured's medical record in order to make their own assessment of life expectancy. Thanks to the federal law known as HIPAA and many state laws, medical records are confidential and cannot be disclosed without the consent of the patient.

To learn more see, HIPAA- Medical Records.

For a viatical settlement, the insured must have a diagnosis of a serious or life-challenging condition.

In theory, the insured has to have a statistical life expectancy of 5 years or less. The largest market is for people with a life expectancy of two years or less -- depending on the

For a life settlement, the insured must be 70 years of age or older.

In practice, the industry also requires that there be some type of medical condition that shortens the insured's life expectancy.

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